Wall Street firm doubles down on bearish Palantir call, sees 70% downside ahead

Group 1: Company Overview - Palantir (NYSE: PLTR) is currently facing bearish pressure, with Citron Research projecting a potential decline of over 70% from its current trading level of $148, which is down 8.24% on the day and has extended weekly losses to over 20% [1][4][7] - The stock is perceived to be significantly overvalued amid increasing competition in the artificial intelligence (AI) and big data sectors [4][6] Group 2: Comparative Analysis - Citron Research compared Palantir to Databricks, a private data analytics company valued at $100 billion, highlighting that if Palantir were to achieve the same valuation, its stock would be worth approximately $40, indicating a substantial disconnect from its current market price [4][6] - Databricks has over 15,000 enterprise clients and operates on a true SaaS model, which positions it as a stronger growth business compared to Palantir, which relies heavily on government contracts [5][6] Group 3: Market Sentiment and Trends - The selloff in Palantir shares is part of a broader trend of weakness in AI-related equities, exacerbated by comments from OpenAI CEO Sam Altman suggesting that the AI sector may be in a bubble, raising concerns about the sustainability of current valuations [7] - Despite recent pullbacks, Palantir shares have increased by 92% in 2025, driven by expectations of more U.S. government contracts and strong retail interest in AI, although commercial revenue growth has not kept pace [8]